Van and fuel benefit


F

Fredxx

An director was removed from the board but still an employee. His wages are
below £8,500 but still retains his company vehicle (classed as a van). Is
there IT and NI to be paid on this throughout the whole year, or only the
part he was a director?
 
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S

Simon

Fredxx said:
An director was removed from the board but still an employee. His wages
are below £8,500 but still retains his company vehicle (classed as a van).
Is there IT and NI to be paid on this throughout the whole year, or only
the part he was a director?
Whole year, if youy are a director for any part of the year, this is for the
whole year for NI purposes.

What are his wages now, if the wages plus van benefit is over £8500, then IT
still applies also.

Simon
 
F

Fredxx

Simon said:
Whole year, if youy are a director for any part of the year, this is for
the whole year for NI purposes.

What are his wages now, if the wages plus van benefit is over £8500, then
IT still applies also.
His wages have been a retainer for a while, but now he is no longer a
director. His wages from this company have always been less than £8,500 and
are unchanged. He has a small tax code with us and has other means.

Is it only NI purposes NI has to be paid throughout the year? For income
tax, is it on a pro-rata basis based the duration of his directorship?

Many thanks.
 
S

Simon

Fredxx said:
His wages have been a retainer for a while, but now he is no longer a
director. His wages from this company have always been less than £8,500
and are unchanged. He has a small tax code with us and has other means.

Is it only NI purposes NI has to be paid throughout the year? For income
tax, is it on a pro-rata basis based the duration of his directorship?

Many thanks.
If someone is a director for any part of the tax year, then NI is due as a
director for the whole year.

A retainer is general earnings and still subject to tax and NI. His earnings
are below £8500 but enough to attract NI so must be circa £6000. If you add
the van benefit of £3000 then the earnings £9000 and therefore above the
threshold.

What is his relationship to co, is he a shareholder? does he manage staff or
represent the comany to the public?
 
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F

Fredxx

Simon said:
If someone is a director for any part of the tax year, then NI is due as a
director for the whole year.

A retainer is general earnings and still subject to tax and NI. His
earnings are below £8500 but enough to attract NI so must be circa £6000.
If you add the van benefit of £3000 then the earnings £9000 and therefore
above the threshold.

What is his relationship to co, is he a shareholder? does he manage staff
or represent the comany to the public?
His income from the company + van benefit still leave him below £8,500.

His duties are limited. He has no shares but does occasional company admin.
He doesn't represent the company as such, though not sure of the criterion
as such, does a salesman represent a company?
 

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